A guide to fraud and how we can prevent it - Westminster City Council
A guide to fraud and how we can prevent it - Westminster City Council
A guide to fraud and how we can prevent it - Westminster City Council
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HOUSING BENEFIT AND<br />
COUNCIL TAX BENEFIT<br />
A <strong>guide</strong> <strong>to</strong> <strong>fraud</strong><br />
<strong>and</strong> <strong>how</strong> <strong>we</strong> <strong>can</strong><br />
<strong>prevent</strong> <strong>it</strong><br />
BL/FRA Revised March 2012
Housing Benef<strong>it</strong> <strong>and</strong> <strong>Council</strong> Tax Benef<strong>it</strong> –<br />
a <strong>guide</strong> <strong>to</strong> <strong>fraud</strong> <strong>and</strong> <strong>how</strong> <strong>we</strong> <strong>can</strong> <strong>prevent</strong> <strong>it</strong><br />
This leaflet explains what<br />
Housing Benef<strong>it</strong> <strong>and</strong><br />
<strong>Council</strong> Tax Benef<strong>it</strong> <strong>fraud</strong><br />
is <strong>and</strong> <strong>how</strong> <strong>we</strong> <strong>can</strong> work<br />
<strong>to</strong>gether <strong>to</strong> <strong>prevent</strong> <strong>it</strong>.<br />
The rules are the same<br />
whichever area you live in.<br />
If you don’t know which<br />
council covers the area<br />
your property is in, you<br />
<strong>can</strong> find this information<br />
on your council tax bill.<br />
What is Housing Benef<strong>it</strong> <strong>and</strong><br />
<strong>Council</strong> Tax Benef<strong>it</strong> <strong>fraud</strong>?<br />
Benef<strong>it</strong> <strong>fraud</strong> is when someone makes a claim for<br />
benef<strong>it</strong> based on information that they know is<br />
false or inaccurate. A claim could also become<br />
<strong>fraud</strong>ulent if the person claiming benef<strong>it</strong> has not<br />
<strong>to</strong>ld us about a change in circumstances that<br />
would reduce the amount of benef<strong>it</strong> they are<br />
ent<strong>it</strong>led <strong>to</strong>. Sometimes, only the person claiming<br />
benef<strong>it</strong> is responsible for benef<strong>it</strong> <strong>fraud</strong>, <strong>and</strong><br />
sometimes their l<strong>and</strong>lord, an employer, a<br />
representative or someone else who helps <strong>to</strong><br />
fill in the benef<strong>it</strong> application form may have<br />
helped them.<br />
Benef<strong>it</strong> <strong>fraud</strong> is a criminal offence. If <strong>we</strong> think<br />
someone is claiming benef<strong>it</strong> they are not ent<strong>it</strong>led<br />
<strong>to</strong>, our dedicated team will investigate them.<br />
If <strong>we</strong> find evidence <strong>to</strong> prove that a person is<br />
comm<strong>it</strong>ting <strong>fraud</strong>, <strong>we</strong> may prosecute them, make<br />
them pay a fine or issue them w<strong>it</strong>h a formal<br />
warning, called a caution. In any case, <strong>we</strong> would<br />
be looking <strong>to</strong> claim back the <strong>to</strong>tal amount of<br />
benef<strong>it</strong> which has been overpaid. In certain<br />
circumstances, <strong>we</strong> may also confiscate other<br />
money or assets if <strong>we</strong> believe they are the<br />
proceeds of crime.<br />
Why is <strong>it</strong> important <strong>to</strong> s<strong>to</strong>p<br />
Housing Benef<strong>it</strong> <strong>and</strong> <strong>Council</strong> Tax<br />
Benef<strong>it</strong> <strong>fraud</strong>?<br />
Benef<strong>it</strong> <strong>fraud</strong> is costing taxpayers an estimated<br />
£2 billion each year. This is money that could be<br />
spent on other v<strong>it</strong>al services. Fraud affects <strong>how</strong><br />
much council tax <strong>and</strong> income tax you have <strong>to</strong><br />
pay <strong>and</strong> the level of resources available <strong>to</strong> share<br />
among our commun<strong>it</strong>y.<br />
We have a duty <strong>to</strong> protect benef<strong>it</strong> funds from<br />
<strong>fraud</strong> <strong>and</strong> abuse. We also have a duty <strong>to</strong><br />
investigate <strong>fraud</strong> <strong>and</strong> the Government measures<br />
<strong>how</strong> <strong>we</strong>ll <strong>we</strong> are doing this.<br />
What is being done <strong>to</strong> help s<strong>to</strong>p<br />
<strong>fraud</strong> in benef<strong>it</strong> claims?<br />
Our Fraud Investigation team works closely w<strong>it</strong>h<br />
other agencies <strong>to</strong> reduce benef<strong>it</strong> <strong>fraud</strong>. They<br />
carry out joint investigations w<strong>it</strong>h the<br />
Department for Work <strong>and</strong> Pensions <strong>and</strong><br />
neighbouring councils <strong>and</strong> the investigations <strong>can</strong><br />
often involve the police, the Border Agency <strong>and</strong><br />
HM Revenue & Cus<strong>to</strong>ms.<br />
We are involved in ‘data matching exercises’,<br />
most of which are carried out by the Housing<br />
Benef<strong>it</strong> Matching Service <strong>and</strong> the Aud<strong>it</strong><br />
Commission’s National Fraud In<strong>it</strong>iative –<br />
including Aud<strong>it</strong> Scotl<strong>and</strong> in Scotl<strong>and</strong>, who check<br />
information held by public author<strong>it</strong>ies <strong>and</strong> a<br />
number of private companies. Any information<br />
that does not match is referred <strong>to</strong> the relevant<br />
author<strong>it</strong>y <strong>to</strong> investigate.<br />
2
We investigate all allegations of benef<strong>it</strong> <strong>fraud</strong>.<br />
If our investigations s<strong>how</strong> that someone is<br />
comm<strong>it</strong>ting <strong>fraud</strong>, <strong>we</strong> will consider prosecuting<br />
or taking other action against the person or<br />
people involved, depending on their personal<br />
circumstances <strong>and</strong> <strong>how</strong> serious the case is.<br />
Our decisions will be in line w<strong>it</strong>h our Benef<strong>it</strong><br />
Fraud Sanctions policy.<br />
What types of Housing Benef<strong>it</strong><br />
<strong>and</strong> <strong>Council</strong> Tax Benef<strong>it</strong> <strong>fraud</strong><br />
are there?<br />
The following are some common types of<br />
<strong>fraud</strong>ulent claims.<br />
■<br />
People not telling us that a partner,<br />
relative, friend or lodger is living in<br />
or has left the property<br />
■<br />
■<br />
People claiming benef<strong>it</strong> for an<br />
address they are subletting or not<br />
living at<br />
This is where a person is claiming benef<strong>it</strong><br />
for an address they are not living at or are<br />
subletting <strong>to</strong> somebody else. It could also be<br />
when a person claims benef<strong>it</strong> for an address<br />
that doesn’t exist or where they may not<br />
have <strong>to</strong> pay rent. This type of <strong>fraud</strong> could<br />
happen w<strong>it</strong>h the help <strong>and</strong> involvement of the<br />
l<strong>and</strong>lord or other tenants.<br />
People who continue <strong>to</strong> claim<br />
benef<strong>it</strong> on a property after they<br />
have moved<br />
If someone does not tell us that they have<br />
moved, but continues <strong>to</strong> accept payments of<br />
Housing Benef<strong>it</strong> for their previous address,<br />
they are comm<strong>it</strong>ting <strong>fraud</strong>.<br />
■<br />
■<br />
■<br />
If someone does not tell us about someone<br />
else living in or moving out of their home,<br />
this is <strong>fraud</strong> as <strong>it</strong> would affect their benef<strong>it</strong><br />
ent<strong>it</strong>lement.<br />
People not telling us that they are<br />
working, the hours they work or<br />
<strong>how</strong> much they earn<br />
It is <strong>fraud</strong> if someone claiming benef<strong>it</strong> does<br />
not tell us they are working <strong>and</strong> so may<br />
not be ent<strong>it</strong>led <strong>to</strong> other benef<strong>it</strong>s such as<br />
Jobseeker’s Allowance or Income Support.<br />
It could also be that they are working<br />
more hours or earning more than they<br />
have <strong>to</strong>ld us.<br />
People not telling us about all their<br />
savings <strong>and</strong> investments<br />
This is where someone does not tell us<br />
about all bank or building society accounts,<br />
cash, s<strong>to</strong>cks <strong>and</strong> shares <strong>and</strong> other types of<br />
savings, as this would affect their ent<strong>it</strong>lement<br />
<strong>to</strong> benef<strong>it</strong>.<br />
People not telling us about a<br />
property they own, e<strong>it</strong>her in the<br />
UK or abroad<br />
■<br />
■<br />
People not giving us full details of<br />
all their income<br />
This is where the person claiming benef<strong>it</strong><br />
does not tell us about all of their income or<br />
changes <strong>to</strong> the amount they receive, as this<br />
would affect their ent<strong>it</strong>lement <strong>to</strong> benef<strong>it</strong>.<br />
Income includes pensions (both works <strong>and</strong><br />
private pensions), tax cred<strong>it</strong>s, student loans,<br />
grants or bursaries.<br />
People not telling us that they, the<br />
father of their children or a relative<br />
owns the property for which they<br />
are claiming Housing Benef<strong>it</strong><br />
We <strong>can</strong>not pay Housing Benef<strong>it</strong> if the<br />
property is owned by the person making the<br />
claim, or the father of any of their children,<br />
so this type of <strong>fraud</strong> is where the person<br />
claiming e<strong>it</strong>her fails <strong>to</strong> tell us they own the<br />
property or does not tell the truth about<br />
the person who does own the property.<br />
This also applies in some circumstances if<br />
a relative of the person claiming owns the<br />
property.<br />
This <strong>fraud</strong> is where a person claiming benef<strong>it</strong><br />
does not tell us about property or l<strong>and</strong> they<br />
own (for which they may be receiving rent).<br />
3
I think I know someone who is<br />
comm<strong>it</strong>ting benef<strong>it</strong> <strong>fraud</strong> –<br />
what should I do?<br />
It is important that you let us know. If you<br />
suspect that somebody is comm<strong>it</strong>ting benef<strong>it</strong><br />
<strong>fraud</strong> <strong>we</strong> want <strong>to</strong> hear from you.<br />
■<br />
■<br />
■<br />
You <strong>can</strong> contact your local council (you <strong>can</strong><br />
find the name of your local council on your<br />
council tax bill).<br />
You <strong>can</strong> phone the National Benef<strong>it</strong> Fraud<br />
Hotline on Freephone 0800 328 6340 or<br />
0800 854440 or 0800 678 3722 for Welsh<br />
speakers.<br />
You <strong>can</strong> fill in the online form at<br />
www.secure.dwp.gov.uk/benef<strong>it</strong><strong>fraud</strong>/.<br />
What information do I need<br />
<strong>to</strong> give?<br />
The law says that there has <strong>to</strong> be a good reason<br />
for investigating someone for benef<strong>it</strong> <strong>fraud</strong> – so<br />
you will need <strong>to</strong> give as much of the following<br />
information as possible.<br />
■<br />
■<br />
■<br />
■<br />
■<br />
■<br />
■<br />
■<br />
■<br />
The names of the people you believe are<br />
comm<strong>it</strong>ting benef<strong>it</strong> <strong>fraud</strong><br />
Their addresses<br />
Details of anyone else involved<br />
Descriptions of the people involved, such as<br />
their height, build <strong>and</strong> hair colour<br />
Descriptions of their vehicles, including<br />
number plates <strong>and</strong> colours<br />
Why you suspect <strong>fraud</strong> <strong>and</strong> what you believe<br />
the people are doing<br />
Details of any work the people are doing,<br />
including the type of work, names <strong>and</strong><br />
addresses of their employers, the hours they<br />
work <strong>and</strong> <strong>how</strong> much they earn<br />
Details of any partners <strong>we</strong> may not have<br />
been <strong>to</strong>ld about, including their name,<br />
description, employment, <strong>and</strong> times they<br />
arrive at <strong>and</strong> leave the property<br />
Details of them spending lots of money,<br />
which you may not expect w<strong>it</strong>h somebody<br />
on benef<strong>it</strong>s<br />
Do I have <strong>to</strong> give my name?<br />
You <strong>can</strong> choose not <strong>to</strong> give your contact details<br />
if you prefer, but <strong>it</strong> helps if you do tell us who<br />
you are so that <strong>we</strong> <strong>can</strong> contact you if <strong>we</strong> have<br />
any questions.<br />
What happens w<strong>it</strong>h the<br />
information I give?<br />
Our Fraud Investigation team will look at the<br />
information you give. They will keep the<br />
information confidential.<br />
If there is enough information, they will check<br />
the person’s benef<strong>it</strong> claim. The investigation may<br />
take some time, <strong>and</strong> the team <strong>can</strong>not tell you<br />
about what they find as a result of the<br />
information you have given.<br />
What action will you take?<br />
Sometimes <strong>we</strong> will not take any action as the<br />
person may not be comm<strong>it</strong>ting benef<strong>it</strong> <strong>fraud</strong>. For<br />
example, <strong>it</strong> might be that the person has already<br />
<strong>to</strong>ld us they are working but this does not affect<br />
their benef<strong>it</strong>. Housing Benef<strong>it</strong> <strong>and</strong> <strong>Council</strong> Tax<br />
Benef<strong>it</strong> <strong>can</strong> be paid <strong>to</strong> people who are in work<br />
but have a low income.<br />
We will only take action if <strong>we</strong> find the person<br />
has been comm<strong>it</strong>ting benef<strong>it</strong> <strong>fraud</strong>. Action <strong>can</strong><br />
include s<strong>to</strong>pping a person’s benef<strong>it</strong>s, making<br />
them pay a fine, <strong>and</strong> taking them <strong>to</strong> court, which<br />
could lead <strong>to</strong> a prison sentence.<br />
4
Where <strong>can</strong> I get more advice?<br />
If you want more help or advice, contact us.<br />
You <strong>can</strong> find contact details on your council tax bill or in your local phone book.<br />
National Fraud Hotline<br />
Wr<strong>it</strong>e <strong>to</strong>: National Fraud Hotline, PO Box 647, Pres<strong>to</strong>n PR1 1WA<br />
Freephone: 0800 328 6340<br />
Webs<strong>it</strong>e: www.targeting<strong>fraud</strong>.gov.uk<br />
Independent advice<br />
If you need independent advice, contact your local c<strong>it</strong>izens advice bureau.<br />
You <strong>can</strong> find their phone number <strong>and</strong> other local advice agencies in your local phone book,<br />
at your local library or by contacting us.<br />
Other formats<br />
You <strong>can</strong> get the information in this leaflet in large print <strong>and</strong> in Braille.<br />
Vis<strong>it</strong> our <strong>we</strong>bs<strong>it</strong>e at www.benef<strong>it</strong>-leaflets.org for more information.<br />
5
This leaflet is a <strong>guide</strong> <strong>and</strong> does not cover every circumstance. Some of the information in this<br />
leaflet may have been simplified <strong>and</strong> some information may become out of date because of<br />
changes <strong>to</strong> the law. We recommend that you get independent advice before making financial<br />
decisions based on this leaflet.<br />
© Copyright Dover District <strong>Council</strong> www.benef<strong>it</strong>-leaflets.org